Microsoft Corp. (NASDAQ: MSFT) announced another move in hopes will please weary shareholders. The Redmond, Wash.-based company declared on Tuesday a quarterly dividend of $0.28 per share, a $0.05 or 22 percent increase over the previous quarter. Microsoft also announced a new share repurchase program, allowing up to $40 billion in stock repurchases with no expiration date.
Dividends refer reflect the portion of profits that a company pays out to shareholders, while share repurchase programs help increase the value of stock by removing shares from the market.
“These actions reflect a continued commitment to returning cash to our shareholders,” Amy Hood, the chief financial officer of Microsoft, said in a statement.
Microsoft shared the news via Twitter, and included the following graph.
â€” Microsoft News (@MSFTnews) September 17, 2013
So far, the announcement hasn’t caused much of an impact on the market, which may not be surprising. The increased dividends are nice, but Microsoft shareholders have put up with at least a decade of mediocre stock performance. In the past five years, shares have only increased 33 percent.
The share repurchase program also isn’t anything new. It’s just a replacement of a program that is set to expire September 30.
Microsoft will meet with its financial analysts Thursday.
Originally from Northern California, Ryan W. Neal came to New York to earn his master's in journalism from Columbia University. He joined IB Times April 2013, and is a writer...